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STOCK NEWS & ANALYSIS
Progressive Impact Corp (PICORP) has announced plans to acquire a 30.2% stake in second board-listed PJBUMI Bhd for RM9m cash, the company told Bursa Malaysia yesterday. “The proposed acquisition is in line with PiCorp’s group strategies and future plan expansion to go into environmental engineering services and waste management,” the company said in a circular to the stock exchange.

GPACKET - Media reports on the soon to be completed telecom sector reforms in China suggest that the tide may be turning for the company. A re-rating could also come from a major corporate exercise to be announced in a matter of weeks, providing a boost to its broadband initiatives. While 4Q07/FY07 results due later this week are likely to be a let down (as guided in our recent updates), this is to be expected. We continue to advise investors to look beyond interim challenges. Maintain BUY with a target price of RM4.00 pending a further review of our forecasts. (OSK)

Major shareholder Mohan M.K. Swami has offered 60 sen per share for the remaining shares in SITTAT and Chase Perdana (CHASE) that he and persons acting in concert do not already owned.

MY SWING COUNTERS
(Each thousand shares represents a transaction at different price and time. It is not the volume actually been traded.)
Code/Price/Date/#Shares/Closing/Remarks
Annjoo/3.153/0219/3000/3.14/ added @3.02
DBHD/0.3875/0906/4000/0.27/ hold
Dialog/1.639/1009/8000/1.54/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Gamuda/4.18/0221/1000/3.66/ sold @3.88
Idaman/0.3287/1025/4000/0.155/ hold
K1/0.9280/0411/4000/0.995/ hold
MEMS/0.175/0214/1000/0.135/ hold
MVest/0.804/0719/5000/0.715/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.07/ hold
Putera/0.56/1115/3000/0.455/ hold
SKPRes/0.1633/1102/3000/0.14/ hold
Tebrau/1.2251/0822/4000/0.945/ hold

MY SWING COUNTERS
(Each thousand shares represents a transaction at different price and time. It is not the volume actually been traded.)
Code/Price/Date/#Shares/Closing/Remarks
Annjoo/3.153/0219/3000/3.14/ added @3.02
DBHD/0.3875/0906/4000/0.295/ hold
Dialog/1.639/1009/8000/1.52/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Gamuda/4.18/0221/1000/3.92/ hold
Idaman/0.3287/1025/4000/0.16/ hold
K1/0.9280/0411/4000/0.955/ hold
MEMS/0.175/0214/1000/0.16/ hold
MVest/0.804/0719/5000/0.735/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.065/ hold
Putera/0.56/1115/3000/0.47/ hold
SKPRes/0.1633/1102/3000/0.14/ hold
Tebrau/1.2251/0822/4000/0.995/ hold

STOCK NEWS & ANALYSIS
TANAMAS’s net profit surged 329% to RM10.12 million in the second quarter ended Dec 31, 2007 (2QFY08) from RM2.36 million in 2QFY07, on the back of higher crude palm oil prices.

Lin Yun Ling, the managing director of Malaysian builder GAMUDA has sold 70 million shares in the company, cutting his stake to 1.7 per cent from 5.2 per cent. Lin Yun Ling sold the shares through Credit Suisse for “estate-planning purposes” and remained very optimistic about Gamuda’s prospects, the firm said in a statement. Lin pledged to retain his remaining 34.7 million shares, or 1.73 per cent of the firm, for at least 18 months, Gamuda said. “I continue to be very optimistic about the prospects of Gamuda,” Lin said in the statement. “I intend to remain in my present management position for the foreseeable future.”

FINANCIAL NEWS
Fed Saw Need for `Relatively Low' Rates for Some Time
Feb. 20 (Bloomberg) -- Federal Reserve officials, voting for the fastest easing of monetary policy in two decades, said ``relatively low'' interest rates may be needed for some time to counteract a faltering U.S. economy.

The U.S. has moved closer to a recession since policy makers last met, with payrolls shrinking, manufacturing stalling and the housing market showing no sign of recovery. At the same time, some officials also considered that a reversal of the rate cuts may be needed once the economy stabilizes, the minutes showed.

Some members noted ``when prospects for growth had improved, a reversal of a portion of the recent easing actions, possibly even a rapid reversal, might be appropriate,'' said the minutes, released in Washington today. Still, policy makers didn't see their rate cut as adding to inflation pressures given the weakness in growth. ``Members agreed that inflation was likely to moderate in coming quarters.''

Policy makers cut the benchmark rate by a half-point on Jan. 30, eight days after an emergency reduction of 0.75 percentage point. The Federal Open Market Committee has lowered the rate from 5.25 percent since September, and some traders anticipate further reductions. Stocks gained and the dollar pared its advance after the minutes.

MY SWING COUNTERS
(Each thousand shares represents a transaction at different price and time. It is not the volume actually been traded.)
Code/Price/Date/#Shares/Closing/Remarks
Annjoo/3.22/0219/2000/3.18/ hold
DBHD/0.3875/0906/4000/0.30/ hold
Dialog/1.639/1009/8000/1.55/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Gamuda/4.18/0221/1000/4.20/new buy
Idaman/0.3287/1025/4000/0.165/ hold
K1/0.9280/0411/4000/1.01/ hold
MEMS/0.175/0214/1000/0.165/ hold
MVest/0.804/0719/5000/0.76/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.07/ hold
Putera/0.56/1115/3000/0.46/ hold
SKPRes/0.1633/1102/3000/0.145/ hold
Tebrau/1.2251/0822/4000/1.03/ hold

STOCK NEWS & ANALYSIS
Bursa Malaysia Securities Bhd has started de-listing procedures against Megan Media (MEGAN) Holdings Bhd, with a notice to give cause why its securities should not be removed from the official list.

Sunway City Bhd’s (SUNCITY) net profit for the second quarter (2Q) ended Dec 31, 2007, surged 450.4% to RM169.73 million from RM30.84 million a year earlier, mainly contributed by the property development and property investment segments and the fair value gain of RM315.7 million as a result of the revaluation of the Sunway Pyramid Shopping Mall.

Code/Price/Date/#Shares/Closing/Remarks
Annjoo/3.22/0219/2000/3.22/added @3.18
DBHD/0.3875/0906/4000/0.305/ hold
Dialog/1.639/1009/8000/1.56/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.165/ hold
K1/0.9280/0411/4000/1.04/ hold
MEMS/0.175/0214/1000/0.175/ hold
MVest/0.804/0719/5000/0.77/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.0725/ hold
Putera/0.56/1115/3000/0.495/ hold
SKPRes/0.1633/1102/3000/0.15/ hold
Tebrau/1.2251/0822/4000/1.03/ hold

STOCK NEWS & ANALYSIS
ANNJOO - Given the stronger than expected numbers in FY07 coupled with favourable company prospects backed by escalating steel prices plus robust demand, we reiterate our BUY recommendation on Ann Joo Resources. With that, we have tweaked our earning estimates up marginally by 1.2% and 2.3% for the next 2 years that translate into a higher 12-month target price of RM4.62 or 41.8% upside potential. The fair value is derived from a 12x steel sector PER on FY08 numbers. (OSK)

DIALOG’s revenue jumped to RM212.364 million from RM99.506 million. For the first half ended Dec 31, 2007, the company's pre-tax profit stood higher at RM48.990 million from RM29.186 million.

Code/Price/Date/#Shares/Closing/Remarks
Annjoo/3.24/0219/1000/3.24/new buy
DBHD/0.3875/0906/4000/0.30/ hold
Dialog/1.639/1009/8000/1.54/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.17/ hold
K1/0.9280/0411/4000/1.03/ hold
MEMS/0.175/0214/1000/0.17/ hold
MVest/0.804/0719/5000/0.77/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.075/ hold
Putera/0.56/1115/3000/0.52/ hold
SKPRes/0.1633/1102/3000/0.145/ hold
Tebrau/1.2251/0822/4000/1.07/ hold

STOCK NEWS & ANALYSIS
CIMB - We reiterate our OVERWEIGHT stance on the water sector with key re-rating catalysts being i) the award of Langat 2, ii) the award of the tunnelling portion of the water transfer programme and iii) eventual consolidation of Selangor’s water assets. Our top pick for the sector is Puncak Niaga (PUNCAK) which is a potential privatisation play. For direct exposure to Langat 2, investors should consider KPS and JAKS Resources.

CIMB - We are more excited about VADS following our recent visit for two reasons. 1) It expects to clinch a new offshore contact care service (CCS) contract soon; and 2) the ramp-up from existing customers is faster than expected. For now, we maintain our target price of RM7.75 based on 15.4x CY09 P/E.

Code/Price/Date/#Shares/Closing/Remarks
DBHD/0.3875/0906/4000/0.31/ hold
Dialog/1.639/1009/8000/1.60/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.18/ hold
K1/0.9280/0411/4000/1.03/ hold
MEMS/0.175/0214/1000/0.17/ hold
MVest/0.804/0719/5000/0.815/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.075/ hold
Putera/0.56/1115/3000/0.57/ hold
SKPRes/0.1633/1102/3000/0.145/ hold
Tebrau/1.2251/0822/4000/1.06/ hold

STOCK NEWS & ANALYSIS
MEMS has yet to submit its audited financial accounts for financial year ended July 31, 2007. Its shares will be suspended if it fails to submit before end of this month.

The proposal of the restructuring of PMI is close to being approved as the authority deems the cash injection promised by its major shareholder Khoo Kay Peng as positive move. However, PMI is a PN/17 company as there is no core business directly under it. Most of its business such as retail, hotel and financial services are putting under MUIIND. Sources say Khoo is taking steps to streamline its group business by disposing non-performance business and use the fund to reduce the debt. The ongoing process might result the consolidation of his business into three core business namely retail, hotel and financial service and listed. PMCAP is on course to apply an investment bank license. Analysts have positive views on the process.

FINANCIAL NEWS
贝南克预计美国经济增长先抑后扬

国联邦储备委员会(Fed)主席本•贝南克(Ben Bernanke)周四为进一步减息留下余地，其表示，住房、劳动力和信贷市场仍对经济增长构成下行风险。

但贝南克似乎对2008年下半年和2009年经济形势感到乐观，届时财政政策和货币政策将同时发挥作用。

他说，美国联邦公开市场委员会(Federal Open Market Committee)将在必要时及时采取行动，支持经济增长，对经济下滑风险加以充分的防范。他同时暗示，由于经济政策见效需要时间，未来的政策动向将取决于Fed对经济增长和通货膨胀的中期预测以及与预测有关的风险。

贝南克同时警告，未来数月消费需求可能下滑，称劳动力市场已经出现疲软，1月就业人数有所减少；此外，能源成本的上升、股票价格的下跌和住房价值的贬值也或将对近期消费支出构成影响；住房建筑活动可能会进一步减少。

但他表示，近期推出的财政刺激政策将对2008年下半年和2009年的消费需求和投资需求构成提振。

有关通货膨胀问题，贝南克称2007年的一个重要情况是油价大幅上涨；食品价格的上涨速度也非常之快，同时美元汇价则不断走低。

他认为，通货膨胀率将有所下降，公众的长期通货膨胀预期应该仍能得到良好控制。

Fed stands ready to ease further, Bernanke says

Feb 15 (MarketWatch) -- Federal Reserve Chairman Ben Bernanke said Thursday the central bank was ready to cut interest rates further if fresh signs of a weaker-than-expected U.S. economy emerge.

The Federal Open Market Committee, which sets Fed monetary policy, "will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," Bernanke told the Senate Banking Committee in prepared testimony.
The Fed has done a lot to stave off a recession but stands ready to do more if the outlook darkens, he said.

The outlook for growth has deteriorated since the Fed published its last forecast in October, Bernanke said.

In his brief written remarks, Bernanke painted an "improving picture" for the economy, saying he expects a stronger pace of expansion starting later this year after an unspecified "period of sluggish growth."

Inflation should moderate from its current rate, and the public's expectation of inflation should remain "reasonably well anchored," he said.

Code/Price/Date/#Shares/Closing/Remarks
DBHD/0.3875/0906/4000/0.32/ hold
Dialog/1.639/1009/8000/1.60/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.18/ hold
K1/0.9280/0411/4000/1.06/ hold
MEMS/0.175/0214/1000/0.18/buy back
MVest/0.804/0719/5000/0.855/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.08/ hold
Putera/0.56/1115/3000/0.60/ hold
SKPRes/0.1633/1102/3000/0.145/ hold
Tebrau/1.2251/0822/4000/1.12/ hold

STOCK NEWS & ANALYSIS
OSK Holdings' net profit will more than double to RM350 million for the year to December 31, 2007 with revenue surpassing RM1 billion, BT reported. Net earnings would also be boosted by its local stockbroking and investment banking operations, company sources said.

FINANCIAL NEWS

Feb 14 (The Edge) -- The local stock market, which has had a run-up ahead of the general election, could still see some upside on expectations of spillover effects from construction contracts and firm commodity prices, analysts said.

Kenanga Investment Research said yesterday the general election would have a positive spillover on the market prior or up to the day of polling.

Feb 14 (OSK) -- Malaysia’s palm oil inventory hit record high on seasonally slow exports, aggravated by snowstorm in China and earlier concerns of EU’s biodiesel policy change. We do not see this as a cause for concern as exports will recover as northern hemisphere’s weather gets warmer. Palm oil prices are likely to remain firm on anticipation of tighter supply demand situation ahead. Maintain Overweight.

We remain positive on the sector as we believe the market has not fully discounted the potential supply shortfall in the year ahead, mainly from Indonesia’s drought-impacted production yield. We continue to think plantation stocks are at comfortable valuation levels, despite our conservative CPO price assumption.

MY SWING COUNTERS
(Each thousand shares represents a transaction at different price and time. It is not the volume actually been traded.)
Code/Price/Date/#Shares/Closing/Remarks
DBHD/0.3875/0906/4000/0.325/ hold
Dialog/1.639/1009/8000/1.59/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.18/ hold
K1/0.9280/0411/4000/1.05/ hold
MEMS/0.175/0214/1000/0.175/buy back
MVest/0.804/0719/5000/0.86/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.08/ hold
Putera/0.56/1115/3000/0.615/ hold
SKPRes/0.1633/1102/3000/0.15/ hold
Tebrau/1.2251/0822/4000/1.13/ hold

FINANCIAL NEWS
Buffett: 'I'm a Huge Bull on the American Economy

No bailout needed, says billionaire investor Warren Buffett.

The investing legend said this week that he thinks the U.S. economy can fix itself soon enough, and without a federal stimulus plan.

"I am a huge bull on the American economy," Buffett told Ontario daily The National Post. A recession is looming, but Buffett says the United States has overcome worse and come out ahead.

"It is not a smart thing to sell the United States short over the years — or Canada for that matter,” Buffett said. "The world does get better. People get more productive. More human capacity is unleashed over time.”

Buffett said that the financial institutions that got wrapped up in sour mortgage loans can and will sort out those bad investment vehicles without government help.

"The ones that have taken the big write-offs, they're not going out of business, but they're selling a lot of new shares in the process so they're diluting future earnings. They're paying a price,” Buffett said.

The banks might not be great investments for a while, even for a few years, but they are not "permanently crippled” by all those subprime loans.

In any case, a government-led bailout simply won’t be necessary, Buffett said. The banks took the risks, and they should take the losses, not American taxpayers, he said.

Buffett also spoke in relative favor of the investments made by foreign countries, often using U.S. dollars from their exports or from high-priced crude oil.

He said the rise of sovereign wealth funds was the "inevitable consequence” of the U.S. trade deficit.

"If we're going to consume US$2 billion a day more of foreign goods than we sell to the rest of the world we have to ship them something in exchange,” Buffett said.

What they get is dollars, which inevitably find their back to the United States in the form of investments here.

"The United States is fueling the sovereign wealth funds. We're making deposits in their wealth funds in effect,” Buffett said.

As for the housing crunch, Buffett says he does not see a major credit problem ahead, or at least not enough to seriously damage the U.S. economy.

"I went through 1982 when short-term money cost 21 percent. This is not a tough period,” Buffett said.

MY SWING COUNTERS
(Each thousand shares represents a transaction at different price and time. It is not the volume actually been traded.)
Code/Price/Date/#Shares/Closing/Remarks
DBHD/0.3875/0906/4000/0.33/ hold
Dialog/1.639/1009/8000/1.57/ hold
Foutain/0.1475/0105/6000/0.00/ suspended
Idaman/0.3287/1025/4000/0.185/ hold
K1/0.9280/0411/4000/1.01/ hold
MEMS/0.135/0211/1000/0.18/sold @0.20
MVest/0.804/0719/5000/0.865/ hold
Nscom/0.05/0713/1000/0.00/ suspended
Palette/0.1050/0829/4000/0.08/ hold
Putera/0.56/1115/3000/0.64/ hold
SKPRes/0.1633/1102/3000/0.15/ hold
Tebrau/1.2251/0822/4000/1.10/ hold